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Friday, February 20, 2015

Paul Krugman: Cranking Up for 2016

Creating an alternate reality:

Cranking Up for 2016, by Paul Krugman, Commentary, NY Times: Scott Walker ... did what, these days, any ambitious Republican must, and pledged allegiance to charlatans and cranks. ...
Mr. Walker, in what was clearly a rite of passage into serious candidacy, spoke at a dinner at Manhattan’s “21” Club hosted by the three most prominent supply-siders: Art Laffer...; Larry Kudlow...; and Stephen Moore... Politico pointed out that Rick Perry, the former governor of Texas, attended a similar event last month. Clearly, to be a Republican contender you have to court the powerful charlatan caucus.
So a doctrine that even Republican economists consider dangerous nonsense has become party orthodoxy. And what makes this political triumph especially remarkable is that it comes just as the doctrine’s high priests have been setting new standards for utter, epic predictive failure.
I’m not talking about the fact that supply-siders didn’t see the crisis coming,... the people Mr. Walker was courting have spent years warning about the wrong things. “Get ready for inflation and higher interest rates” was the title of a June 2009 op-ed ... by Mr. Laffer; what followed were the lowest inflation in two generations and the lowest interest rates in history. Mr. Kudlow and Mr. Moore both predicted 1970s-style stagflation. ...
Something else worth noting: as befits his position at Heritage, Mr. Moore likes to publish articles filled with lots of numbers. But his numbers are consistently wrong... And somehow these errors always run in the direction he wants.
So what does it say about the current state of the G.O.P. that discussion of economic policy is now monopolized by people who have been wrong about everything, have learned nothing from the experience, and can’t even get their numbers straight?
The ... modern American right seems to have abandoned the idea that there is an objective reality out there... What are you going to believe, right-wing doctrine or your own lying eyes? These days, the doctrine wins.
Look at another issue, health reform. ... Then there’s foreign policy. ... And don’t get me started on climate change.
Along with this denial of reality comes an absence of personal accountability. If anything, alleged experts seem to get points by showing that they’re willing to keep saying the same things no matter how embarrassingly wrong they’ve been in the past.
But let’s go back to those economic charlatans and cranks: Clearly, failure has only made them stronger, and now they are political kingmakers. Be very, very afraid.

    Posted by on Friday, February 20, 2015 at 08:39 AM in Economics, Politics | Permalink  Comments (22)


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